small-cap

Technical Analysis on Two NASDAQ-Listed Penny Stocks- MBRX, NVCN

May 23, 2022 12:00 AM PDT | Team Kalkine
Technical Analysis on Two NASDAQ-Listed Penny Stocks- MBRX, NVCN

 

Moleculin Biotech, Inc.

Moleculin Biotech, Inc. (NASDAQ: MBRX) is a clinical-stage pharmaceutical company, focuses on the development of drug candidates for the treatment of highly resistant tumours and viruses. Noted below are the key price indicators for the stock:

Technical Observation (on the Weekly Chart)

On the weekly chart, the stock price of MBRX is trading below the downward sloping trendline and facing the resistance of the same. The leading indicator RSI (14-period) is sustaining below mid-range and showing a reading of ~43.66. The CMP is below the trend-following indicators 21-period & 50-period SMA, which may act as the resistance level for the stock.  

As per the above-mentioned price action and technical indicators analysis, we have a ‘Watch’ rating Moleculin Biotech, Inc. at the close price of USD 1.31 (as of May 20, 2022). Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Neovasc Inc.

Neovasc Inc. (NASDAQ: NVCN) is a Canada-based specialty medical device company that develops, manufactures, and markets products for the cardiovascular marketplace. Noted below are the key price indicators for the stock:

Technical Observation (on the Weekly Chart)

NVCN has broken a crucial support level of USD 9.2625 on April 11, 2022, and since then has been trading below the breakout level. The leading indicator RSI (14-period) is still consolidating in an oversold zone and prices are trading below the trend-following indicator 21-period SMA and 50-period SMA, supporting further downside direction. 

Conclusion

As per the above-mentioned price action and technical indicators analysis, we have a ‘Watch’ rating on Neovasc Inc. at the close price of USD 5.53 (as of May 20, 2022). Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Note 1: Investment Related Risks: This report may be looked at by Investors with sufficient risk appetite looking for returns within a short investment duration. Investment recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

The reference date for all price data, volumes, technical indicators, support, and resistance levels is May 20, 2022. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.